Please review the following commonly asked questions to see if your inquiry has already been addressed. For any additional questions, please call toll free at (866) PAC SURE (722-7873).
What is a surety bond?
Within the insurance industry, a surety bond is a written commitment between three individual parties which guarantees a contract’s execution as it has been agreed upon. Contractual aspects which are addressed by surety bonds include price, performance and payment agreements. The three parties required for the issuing of a surety bond are:
- The Obligee: Entity that Benefits from and Requires the Bond (State Legislators).
- The Principal: Individual, Client or Business Purchasing the Bond (You).
- The Surety: Insurance Company that Issues the Bond (Pacific Surety Insurance Agency, Inc.).
Within specific industries and states, governing legislative bodies may issue requirements for particular bonds in order to legally conduct business. As your broker, or the surety, Pacific Surety Insurance Agency, Inc. strives to provide our clients, or the principal, the lowest available premiums while upholding our unmatched customer service.
Why do I need a surety bond?
Within specific industries and states, governing legislative bodies may issue requirements for particular bonds in order to legally conduct business. These bonds can entail various licenses and permits necessary for the issuing of a particular business license by state. In general, surety bonds are established to protect against fraudulent behavior and failed satisfaction of contractual obligations.
How much will my surety bond cost?
The cost of a particular surety bond is primarily dependent on the credit score (FICO Score) and financial standing of the principal, or individual purchasing the bond. Your credit score (FICO Score) is calculated by major credit reporting agencies and serves as an indication of your ability to fulfill your business related obligations and financial wherewithal to address potential situations which may result in a bond claim. Our gathering of these scores is known as a “soft hit” and does not negatively affect your credit score.
How long is my surety bond good for?
Pacific Surety Insurance Agency, Inc. offers both one and two year bond terms for the majority of our product offerings. Please visit the appropriate product page to confirm available surety bond terms by state.
How long does it take to be issued a surety bond?
Once you have decided to purchase a surety bond, agreements between yourself and the surety company must be finalized and necessary payments received. Once contracts and invoices are satisfied, Pacific Surety Insurance Agency, Inc. is then able to issue your surety bond within a matter of hours. We can also send your new bond directly to the appropriate obligee, or entity requiring the bond.